SMIC's stock rose more than 7% in early trading. At the time of reporting, the share price had increased by 7.59% to HKD 73.70, with a trading volume of HKD 74.64 billion.
According to SMIC's announcement, based on customer demand and existing orders, the company is more optimistic about its overall operational performance this year compared to the previous quarter. This optimism is primarily driven by strong demand for supporting chips from artificial intelligence, which has directly led to a supply shortage in the company's power management chip capacity. The overseas siphon effect of artificial intelligence has also prompted customers in the consumer and IoT sectors to seek production capacity and order returns in mainland China. Additionally, artificial intelligence is driving demand for new applications such as ToF, electric vehicles, and robots, with local companies actively expanding their market presence. The push for domestic supply chain localization is also boosting demand for domestic logic and network communication chips, along with price increases and customers stockpiling in advance due to concerns about future supply shortages.
CICC released a research report stating that SMIC's first-quarter results and second-quarter guidance were in line with expectations. Revenue reached USD 2.505 billion, a year-on-year increase of 11% and a quarter-on-quarter growth of 0.7% (guidance indicated quarter-on-quarter stability). The gross profit margin was 20.1%, up 0.9 percentage points quarter-on-quarter, with guidance set at 18-20%. For the second quarter, the company expects revenue to grow 14-16% quarter-on-quarter, with a gross profit margin between 20-22%. CICC maintained its 'Outperform' rating and a target price of HKD 100.
Comments